How you choose to form your business can have implications to the way you do everyday business. Businesses are commonly formed using four basic structures. These include sole proprietorship, partnership, corporation, and a limited liability company (LLC). Many choose to go with an LLC structure because it limits the personal liability that may happen if the business fails. Thus, your personal assets, like vehicles or houses, will not be at risk. There is also flexibility in the way you choose for your LLC to be taxed. Creating an LLC in both Wisconsin & Illinois follow a very similar path. To learn more about the process, keep reading.
What are the steps to form an LLC?
- Choose a name: The name should include “limited liability company” or “LLC.” The name should also be unique.
- Appoint a Registered Agent: The agent must reside in the state the LLC is formed. This agent essentially accepts the legal papers if the LLC is sued.
- File Articles of Organization: This should include items such as the name of the business, address of the business, purpose of the business, the registered agents name and address, and more.
- Prepare Operating Agreement (Optional in WI & IL, but recommended): Internal document that establishes how you plan to run your business.
- Comply with tax requirements and other regulatory requirements: There are a few requirements your LLC may need to abide by. These can include EIN (Employer Identification Number), business licenses, and department of revenue requirements.
- File annual reports: In both Wisconsin & Illinois, there must be an annual report filed.
Who can help with creating an LLC?
To make sure you are abiding by your state’s process and regulations when trying to form an LLC, contact a business lawyer to help. The attorneys at McDonald & Kloth, LLC are experienced in business formation. Contact the experts for advice on business formation, what business structure is the right fit for you, and for guidance in the actual process of creating your business.